Video: General Partnership Business Structure

In this lesson, Nick Palazzolo, CPA, takes a deep dive into the intricacies of the general partnership business structure. He outlines how a general partnership requires two or more individuals to operate a business together, highlighting that while written agreements are not mandatory, they are highly advisable. Nick explains the core pros, like the right to directly manage the business, and the major con — unlimited personal liability for the partners. He carefully breaks down the profit and loss sharing rules, apparent authority, and the process for disassociation and dissolution of a general partnership with clear examples. Nick's approach helps demystify the default rules that apply in the absence of specific agreements among partners. Plus, he offers practical insights on partnership formation and what happens when a partner can't cover their share of losses, ensuring that attendees are well-prepared for any related questions on the exam.